Investing in China: the B2b or Business to Business Approach

The economy of China is one of the fastest growing economies in the world. The growth indicators predict the rise of China as an economic giant, taking over all the Asian communities. The gross domestic product (GDP) growth rate of China is growing at 10 per cent annually, which is three times more than the GDP growth of USA.

The growing economy is one of the reasons that investors are keen to invest in B2B or business to business world which results into ever increasing China global sourcing. Foreign investments in import and export or global sourcing of Chinese goods have been rapidly increasing since 1990. The main reasons for the fast growing economy of China and B2B or business to business market are free economic policies adopted by China, joining the World Trade Organizations and infrastructure of highways, power plants and telephone networks. Consequently, global sourcing and investments in

-B2B or Business to Business Trading in China

The foreign investors can invest in China's stock trading market or import and export of goods. One can buy the shares of the companies of Hong Kong Stock and US Exchange. One can invest in the stock market through the stock traders and brokers. The websites provide all information about Hong Kong Stock market, the list of the companies dealing in import and export or global sourcing.

-Investment in Mutual funds via B2B or Business to Business

One can also invest in the mutual funds via B2B or business to business market of China. According to a report published by Morning Star online edition, best funds of China in 2006 were Dreyfus Premier Greater China, Oberweis China Opportunities, Old Mutual Clay Finlay China Inst., JHancock Greater China Opp, Columbia Greater China A , ING Russia, A, Matthews China, etc. According to a Morning Star fund analyst, the three best funds are T.Rowe Price New Asia (PRASX), Mathews Pacific Tiger Fund and Liberty Newport Tiger. The investors can choose also the funds such as Inveastec China and Hong Kong, Mathews China Fund, Liberty Newport Greater China A, U.S. Global Investors China, Regular Opportunity and Fidelity China Region, etc.

-The Industries of China B2B or Business to Business

China is growing rapidly; so are global sourcing and import and export of goods. Consequently, there has been increase in the demand of tele communication, energy and transportation sector. So, most of the funds own shares in these B2B or business to business sectors. The Chinese government has started privatizing practices in some parts of the industry, as a result of which companies are heavily investing in the selected sectors such as power, telecom and transportation. In overall, global sourcing is on its high in China as well as import and export industry; B2B or business to business is playing vital role.

-Do you fear for dramatic loss of Heng Seng?

The foreign investment has been on a constant rise in China global sourcing or import and export of Chinese goods since 1990. Most analysts say the dramatic loss of 31 per cent of Hong Kong based Heng Seng in 1994, was the result of rigid economic policies of Chinese government. But the mutual economic policies of the government, related to public sector companies including import and export industry, adopted from 1990, opened the way for the investors. Though the markets have been freed and flexible approaches have been adopted by the government, yet the analyst believe that there are a few risk factors as government still plays a vital role in China.